Anthem Biosciences IPO Opens: 'Subscribe' Says DRChoksey — Check Issue Details

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Deven Choksey Report

Anthem Biosciences Ltd. launched its IPO today and the offer closes for subscription on July 16.

Anthem Biosciences is a fully integrated, innovation-led and technology-driven CRDMO offering end-to-end solutions across the drug discovery, development, and manufacturing value chain.

The company has fixed the price band in the range of Rs 540 to Rs 570 per share.

The Rs 3,395 crore IPO, comprises entirely of an offer-for-sale component of 5.96 crore shares.

Investors can place bids starting from a minimum of 26 shares and in multiples thereafter.

Since the Anthem Biosciences IPO is entirely an OFS, proceeds from the offer will go directly to the selling shareholders.

JM Financial Ltd., Citigroup Global Markets India Pvt Ltd, J.P. Morgan India Pvt Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd. are the book-running lead managers for the public issue.

The allotment for the Anthem Biosciences IPO is expected to be finalized on July 17.

The shares will be listed on both the National Stock Exchange and the BSE on July 21.

Outlook:

Anthem Biosciences, is one of the India’s largest tech-driven CRDMO company with end-to-end capabilities across drug discovery, development, and manufacturing, uniquely offering both NCE and NBE solutions. Its founders have rich industry knowledge and experience, with two of them being instrumental in growth journey of Biocon and Syngene International.

Driven by its industry leading facility, it has built extended capability in manufacturing complex drug substance. Its revenue and EBITDA has witnessed robust growth of 32.1% and 25.1% CAGR over FY23-25, led by commercialization of large-scale manufacturing, much ahead of the peer average of 8.5% and 13.8% CAGR, respectively.

Moreover, it commands industry leading Ebitda margin of 36.4% compared to peer average of 28.8%, driven by its lean employee base engaged in manufacturing.

The company has presence in all fast-growing segments including ADC’s, peptides (semi-glutides / GLP-1), oligonucleotides, and RNA based therapies, which we believe will support’s its drug discovery pipeline and help in commercialize key drugs for its partners and customers.

Anthem Bioscience’s initial issue is priced at 47.4x trailing twelve months EV/Ebitda compared to peer average of 42.7x trailing twelve TTM EV/Ebitda.

Even though, the issue seems to be priced higher than the peer average, we believe it demands a premium led by stronger growth, industry leading margins, steady profitability and deep capability to produce complex products. We assign a “Subscribe” rating to the issue.

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